BackAdani Group stocks crash on report some FPI accounts frozen
The Securities and Exchange Board of India is also said to be investigating whether there has been price manipulation in the stock which have surged in the past one year
PremiumMUMBAI: Shares of Adani group stocks slumped on Monday after the Economic Times reported that the National Securities Depository Ltd has frozen accounts of three foreign funds that have a total investment of Rs43,500 crore in group companies.
Adani Enterprises cracked 25%, Adani Ports fell 17%, Adani Total Gas was down 5%, Adani Green Energy 5%, Adani Power 5%, Adani Transmission 5%.
According to the report, accounts of Albula Investment Fund, Cresta Fund, and APMS Investment Fund which together own over Rs43,500 crore worth of shares in four Adani Group companies have been frozen due to insufficient disclosure of information regarding beneficial ownership as per the Prevention of Money Laundering Act.
The Securities and Exchange Board of India is also said to be investigating whether there has been price manipulation in the stock which have surged in the past one year.
Over the past one year, shares of Adani Enterprises have gained 741%, Adani Ports 100%, Adani Green 245%, Adani Transmission 650%, Adani Power 271%, and those of Adani Total Gas have jumped 1066%.
"...The holding of these companies were majorly held by the promoters and few foreign funds. Lack of holding in the domestic market whether by individuals or institutions created lesser free float for the efficient price discovery. Also the foreign funds holding Adani group companies were holding more than 95% of their assets in Adani Group companies. Accounts of funds...were frozen due to insufficient disclosure of information regarding beneficial ownership . This has created panic in the market seen today with many Adani group companies hitting lower circuits in the opening bell itself," said Mohit Nigam, Head, PMS - Hem Securities.
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